Acquiring new customers costs more than selling to existing customers. Research shows that 81% of consumers rather spend their money at companies with a reward system. The majority also say they are more inclined to share positive experiences with these companies.
Your options
You can roughly divide reward systems into 2 categories: earning points and membership.
Earning points
Earning points as a reward system has been around for a long time. Point systems come in many different forms, from stamp cards to stack discounts.
SushiPoint (in Dutch) rewards their customers with every sushi order: 1 euro is 1 point. Customers can redeem their earned points for sushi. Pizza Beppe (in Dutch) has a similar reward system. You get points for every euro you spend. You can exchange it for pizza, but you can also save up for a Pizza Master Class trip to Naples.
Also good to know: 61% of millennials (the generation born between 1982 and 1999) say that they would rather give their earned rewards to charity than spend them on themselves. An example of a company that responds to this is Bird Brewery. They link the sale of their products to concrete actions that make the world a greener place. For every litre of beer that they sell through a select number of partners, they plant a tree. This way, customers not only enjoy a nice beer, but also give something back to nature.
Membership
With membership, customers pay a fixed fee per month or year and receive a higher discount. The advantage of membership is that it gives a higher level of involvement. There is a commitment from both sides.
For example, you can buy a Booklover Card at American Book Center for 7 euros per year. You always get a 10% discount in the physical store. Members of the Paradiso Vinyl Club receive 10% discount in the Concerto music store, in addition to new releases and discounts on concerts.
Choose what suits your company
Which reward system you choose depends on what you offer as a company. Do you have a shop where many people pay small amounts every time? Then a stamp card is a good start. Do you have a product or service that customers buy less often, but for a larger amount? Then a membership where people can benefit continuously is the best option.
See what suits your company and what your customers need. Are you not certain? Do not be afraid to just ask them. You can always start small with a simple stamp card. Expand it later with specific savings promotions or special products.
3 tips for a successful loyalty programme
How do you ensure that your reward system is a success? Flyeralarm (in Dutch) is a large online printing company that encourages repeat visits to customers with a loyalty programme: the Flyeralarm Club. They share 3 tips that will help you set up or adjust your loyalty programme.
1. Put loyal customers first
Treat your existing customers with respect and appreciation or they will not come back. Reward systems attract new customers, but are mainly intended to keep existing customers. Do you have an interesting promotion or offer? Do not only think about recruiting new customers. Also think about how you can go the extra mile for your existing customers. Give them extras, provide premium service, and reward them for their loyalty. And very important: show that you do this. This way, other customers also know what you offer. When they see what they are missing, they will want the same extras. This way, a visible programme for existing customers can also attract new customers.
With the Flyeralarm Club (in Dutch), loyal Flyeralarm customers are in the front row. The company not only offers a discount, but also gives various master classes that are exclusive to members.
2. Keep it simple
Do not make your reward system too complex, with an extra discount or bonus points. 61% of consumers say they find most loyalty programs too complicated. This will confuse the customer. Also, it makes it seem like you are only interested in increasing your sales. So keep it simple.
Flyeralarm gives club members a high discount: they pay €300 per year and receive 15% discount on all printed products. A simple calculation shows that the benefit already starts when they order €2,000 worth of printouts per year.
3. Keep working on it
No matter how successful your programme is, you have to keep working on it. Make sure you time new promotions, relevant contact moments, or other benefits right. The Flyeralarm Club does this by organising regular events and master classes. So, stay in touch with your customer, check what their needs are, and see how you can respond.